Alibaba stock rises in wake of China regulator’s draft rules on overseas listings

Shares of Alibaba Group Holding Ltd.
rose 0.8% in morning trading Monday, after China’s securities regulator’s draft rules on overseas listings released over the long weekend OK’d the listing structure known as variable-interest entity (VIE) used by the e-commerce giant to list its shares on the NYSE. Alibaba’s stock has now rallied 6.8% since closing at a 4 1/2-year low of $111.96 on Dec. 3, but was still down 20.4% over the past three months, and 48.6% year to date, while the S&P 500
has gained 26.9% this year. The China Securities Regulatory Commission (CSRC) said companies can list shares outside of China using the VIE structure as long as they follow domestic laws and register with the CSRC first, according to a report in The Wall Street Journal. Among other China-based companies listed in the U.S. using the VIE structure, which are still facing scrutiny by U.S. regulators, shares of ride-hailing company DiDi Global Inc.
slid 2.0%, e-commerce company Inc.
fell 0.8% and internet-search company Baidu Inc.
gained 1.2%. DiDi said earlier this month that it plans to delist from the NYSE, and to list in Hong Kong, amid pressure from regulators.